ANZ Investments has hired BlackRock as an underlying manager to replace long-time incumbent, MFS.
According to documents released today, ANZ has swapped out MFS with a BlackRock active multi-factor vehicle.
MFS comprised just under half – or more than $4.6 billion, according to the March quarter Melville Jessup Weaver investment survey – of the total ANZ global equities multi-manager strategy used by the bank’s KiwiSaver and other funds.
The Boston-based manager, which turned 100 this year, has been a fixture on the ANZ active international shares panel for over a decade along with LSV, Vontobel and Franklin Templeton (the latter three remain in place). ANZ also uses Northern Trust Asset Management for some global equities portfolios.
The most recent ANZ disclosure documents note: “We may use external global experts to support or help deliver investment management functions such as identifying investment opportunities, investment risk management and external fund manager selection and monitoring. We remain responsible for these functions. We use this expertise as it complements our own and helps us to deliver improved investment outcomes.”
Last August the bank-owned manager flagged alliances with both BlackRock and Mercer, signing memorandums of understanding ahead of an expected investment shake-up.
At the time, ANZ funds head, Fiona Mackenzie, said the $30 billion plus fund manager needed to “ensure we stay competitive and continue to meet the changing needs of our customers, our business model needs to continue to adapt and evolve”.
Paul Huxford, then ANZ chief investment officer, also resigned along with the announcement, later to be replaced by NZ Superannuation Fund general manager portfolio completion, George Crosby.
The funds management shop, NZ’s largest retail outlet, has seen several other long-time investment executives leave, too, including Craig Tyson, head of Australasian listed property, and Maaike van Tol, head of asset allocation, in March this year.
A couple of months later ANZ closed its approximately $3.5 billion wholesale arm, giving clients until the end of August to find new homes.
In a statement, Mackenzie said ANZ remains an active investor and will continue to make investment decisions that we believe will deliver strong long term investment outcomes for all our customers”.
“ANZ Investments continually reviews external managers, including monitoring their contribution to risk and return at a total portfolio level,” she said.
“We believe introducing the BlackRock strategy will contribute positively in both respects. It is actively managed and designed to be resilient to a variety of market environments.”
According to the statement, the group “continues to explore potential partnerships with both BlackRock and Mercer”.
ANZ has over $21 billion under management across three KiwiSaver schemes and more than $10 billion in other retail and private wealth funds.
The new BlackRock factor strategy represents about 12 per cent of ANZ total funds under management.